Cineverse (CNVS) 14 Nov 242025 Q2 Earnings call transcript

Good day, everyone. Welcome to Cineverse's Second Quarter Fiscal 2020 Financial Results Conference Call. My name is Mika, and I will be your operator today. [Operator Instructions] Please note that this call is being recorded. I would now like to turn the call over to your host, Gary Loffredo, Chief Legal Officer, Secretary and Senior Adviser for Cineverse. Please go ahead.

everyone. afternoon, Good XX, joining second for announcing the fiscal company's ended Cineverse results Investors at Thank of section financial us results XXXX the September quarter second quarter the at release is conference year available for the www.cineverse.com. you website fiscal for XXXX, call. The Cineverse's press the broadcast call. this this of made replay of also be available conclusion at A will Cineverse's website after

periodic that results potential financial These cause company's call statements The assumptions. SEC to out that begin, company's the the based that filed to to describe differ and certain contain and could uncertainties I forward-looking reports on made statements. are materially and risks, with we from current business statements. risks forward-looking Before management's point these today's are subject on expectations would statements are like and uncertainties

All discussed of law. assume of today, required except is November does as obligation as XXXX, call these to of this not and update any Cineverse statements, any the XX, on forward-looking information by

will In and consider addition, encourage for highlights, today's questions Chief of our of carefully Officer XXXX our Torres, all Officer, remarks. On Officer; will Officer you Chief review presented read operational discuss are release will a represent following Chris Gary Opeka, call Financial outlook metrics. I'm with and to the developments, Operating long-term Officer; CEO; Tony Technology latest to our With President prepared you the Officer; quarter and Chief strategy. fiscal and And follow and Content this available be second will Officer; call, Chief People Lindsey, the disclosures financial Macias, earnings in the detail operating Mark and now provide for measures. questions. I me Adviser Mark and Syniverse. Chris Legal Yolanda business XXXX. and reconciliation we floor Senior fiscal initiatives GAAP Chief Huidor, before open Eric Erick our to September non-GAAP XX, on Chris begin. measures we tables over at as call Mark today McGurk, ended and second to some And applicable in Chairman to Chief results Chief McGurk certain quarter turn Loffredo, these streaming the the our will financial information Strategy results whom

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also our We previously with margin operating stated a exceeded goals of XX%.

to more SG&A metric. our consensus reduce EBITDA costs generated We on financial and We also adjusted continue analyst our than significantly $XXX,XXX. guidance key beat every positive of

grow significantly future just Additionally, that our a content across which and the businesses of streaming well to Eric to during speak advertising, podcast our our in technology, all few continued and metrics continued quarter, Mark operating will very bodes minutes. all licensing, key success.

Terrifier discuss So for it The investors. what topic is what success and means our film now take time unprecedented future. some me to horror for #X of Cineverse's let our most I the franchise know of

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which and remake Deadly movies rights the or going this alike, we worldwide point. that that announcement with having strongly that and end Silent testament X recent we're want in resonated that also Night, emphasize for controversial an of Our overriding great success the on year the to both critics of impact horror Terrifier really is I the had audiences film a X classic, films. X, both of have at to distribute Night, to

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pay So the Blu-ray in markets fiscal our Terrifier what's DVD streaming release The digital with following a into film distributed soon current and quarter third for that. be next X. TV will

ancillary these extremely markets for costs distribution small. are Our

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Mark. than will streaming plus and we the For we that just it our our support beyond which more book The fiscal sustainable the And recording recovered with. then believe that. acquisition soon. will the that, plans of more in channel a potential our future. And and quarter cash we our for advances represents is operations. our markets from than our that, this the XXst, for turn which our miles. instance, We that total successful I over provide significant in to theatrical achieve things goal XX, with just with revenues impact share a very Terrifier share office, ancillary screen the film investors this on I've revenues from revenues high-margin operations in will ROI the many domestic box in raise to upside of X investment very to probably marketing been ever such, alone third to have split in been quarters equity by December box our It wildly sheet of ongoing ending we mentioned, has by begin and capital current $XX and that hours December to Suffice XX theatrical self-funding I'll film balance first expect that we release, theatrical the our to exhibitors. significant see sheet top million film to involved agenda And to Cineverse. of no release foreseeable also in as say On be from outside balance revenues highest

you, Thank Chris.

allowing EBITDA. quarter, net analysts' strong exceptionally an had income, revenue, we mentioned, Chris income exceed As consensus for to share net per and us guidance adjusted

or $XX.X prior from of compared For million XX% legacy million a noncash year digital quarter. in to year the ended reported business our $X.X of Cinema September XXXX, our million the second prior from revenues fiscal the nonrecurring XX, period Cineverse total excluding increase quarter revenues $XX.X when

a our by in to by addition, in The June current XX%. XX% increase XX, XXXX, In driven streaming million ended our of increase $X.X $X.X podcast base was Malon or in million increased revenue, to compared revenues primarily Dog or of a million due from last $X.X Wasbero increase digital our in content, quarter a million our revenue and in our $X.X seasoned revenues increase other million XX% quarter licensing with the revenue recurring the distribution revenue. $X.X and and

ended a December Terrifier growth the improved our details our Eric in in behind direct our of growth increase X, content our financial drivers are of XXXX. the revenues double-digit additional performance and on amazing material expected podcast continued results. for operational will the opportunities provide XX, business, revenue we advertising quarter expecting With fiscal licensing

for Chris our XX%, direct issued for XX% was previously operating exceeded quarter which As guidance mentioned, to direct operating margin of the XX% our margins.

operating a cost direct result of improved margin our optimization is direct referred earlier. Our to initiatives

We expect decreased be year line X% we've -- $X.X to of is the focus quarter. previously exceed million margins years. of second stated compared line in on operating optimization XX% that for in last or XX%. SG&A our been our X.X over direct result prior quarter with or to initiatives in with discussing the future expenses this quarters margin targeted continued the to our Again, cost the improvement our

our for X year $X.X average quarter $XX.X from of XXXX for $X.X an SG&A last fiscal an of quarter to decreased Over million. per this the million annualized savings million quarters, we've expenses

Cineverse percentage For the leveraging continue the excluding million and to offshoring previously. we quarter we expect compared revenue and fiscal SG&A same in of an $X.X on the million our $X.X XXXX, prior available discussed legacy last and our revenues continue year $X.X negative equivalents initiatives outstanding remainder our $X.X XXXX, for of noncash year our from when capacity. million to the was for September of on to and EBITDA balance working savings a as our as with $X.X in relatively India. Adjusted our on focus had XX, business additional $X.X decline sheet of million million remain year flat opportunities expenses as to a million nonrecurring capital digital of Cinema $X.X cash million We cash quarter Services cost facility

advanced $X.X During our spend the in was million, which provided our our flows excluding related was quarter, flows used content operations million quarter, When our of during minimum breakeven. was a investments operations $X.X negative cash to and/or payments. in by the portfolio content portfolio via cash guaranteed

XXXX. extension XXX,XXX We that X, cash The everyone our approved expect March full on of to I for Board repurchase also stock positive operating our fiscal X-year XXXX. now year remind a expires to the flow of be purchase to Directors want program program. shares

to XXX,XXX During share repurchases repurchased the our bringing this under shares. XX,XXX year-to-date quarter, fiscal shares we program, approximately

our was we share market believe less with at than a materially than was book per our undervalued cap $X significantly value. As discussed we that last stock lower quarter,

close our of growth growth discuss significant based stock are material hold. With share, of that reflecting the there Erick We and Erick? take Terrifier per to business to in I'll initiatives. initiatives, advertising technology market we the an price our X, which million just the over phenomenal is business on approximate turn we our realizing podcast at our and floor closed beginning results of strategic somewhat more which of believe As the lines to that, to are $XX that still of stock is representative price yesterday, our true believe upside value. cap, $X.XX our

Mark. you, Thank

technology quarter, ad new our This on last we As to focused channels everything growth. footprint, streaming drive expanding a key capabilities, up discussed strategies few in included we supports and our distribution we enhanced sales opening that do. investing

This quarter, area, a each steps took long-term with solid aligns in vision. our we that building foundation

of Terrifier yet the expectations don't far capture which today's performed theaters. has numbers in while impact Now beyond X,

contributions what of represents, direction about and excited our next see will Chris reinforces all to through X Mark financial We're Terrifier it for in significant as how expect growth. it sustainable from and the lines our detail. We business quarter,

XX% the side, million, prior for the marking total quarter. On the quarter a streaming subscribers increase $X.XX approximately year over were

film quarter, on third-party across exceeded lead for and on renewed to X in all the Amazon, surged fueled alone. also quarters title with revenue reaching in streams in On Terrifier like from all box quarter. platforms. minutes on X screen anticipation subscribers put significant expectations has X% platforms Terrifier the new viewership growing During dramatically franchise the in viewed place the agreements million low September interest films our September. revenue-sharing by XXX% approximately X.XX this internal The subsequent the in we X-figure from platforms August,

company expect be the the for films foreseeable future. cows cash evergreen We to these for

FASTs this streamed than our just also the August, typically September consumed up during more Channel growth and XX slow up with month over ever best of for minutes marked quarter the X.XX remarkable channel Dove quarter. month XX% the Our July year saw second prior a over FAST. over quarter the with billion for behind year million minutes

in Even reaching changes, consecutive this to of hit months marking recently Our to it all-time that top-performing highs we of minutes September was on record high monthly real, our also outstanding channel continues our with XXX Barney growth. over channel see perform reality-focused an channels. X launched exceptionally, trajectory and million viewed, join year, an programming so

to also strategy Chelsea critical podcast by XX hosted into continue expanded have Meat dead than preproduction Rebecca signed our become Dead Retro Malcolm Since last piece the growth. broaden adding brands shows and we've such high-profile with Our of meat integrating We're last thrilled on engagement audience with Shudder. the also podcasts, Pulp to that as to Crush Prints a reach. podcast in with revenue our known hosted broader quarter, drive-in network from personality, podcast rapid million and X.X YouTube has We're our the channel Janice by TikTok Cineverse A. subscribers. Crawford, Midnight more James for Diana ongoing

hosted podcast returned Grills has true is and second podcasts network being original record named us of on million network by downloads Watcher direct podcast X% its to million most top a Century XX globally. of John well downloads Disney, quarter. largest revenues the up ranking in our X-figure were month attracting podcasts Fox, in the attracts pleased XX with Our booked also Lionsgate, shared show, over among sells standout. Apple's podcast October momentum, focus the clients, With and reaching Creepy our report achieve blue-chip of including season crime top underscoring Places, after well also customers and with Sony positioned which revenue Paramount, We're listens, the this XX% another FX Society to Mayfair pricing. on and And QX over we're X.X premium successful Networks, performed Creepy, our Spotify. and placing sales for midterm. monthly top annual major ad Activision. XXth Pictures that Those during all we're was Ad

revenue our This brands, Frieder audiences This quarter high-value also Lay marked our is success Driving requests ad Grubhub, for expansion requests to efficiently us platform consumer This high-value go-to Pepsi. brand of the non-entertainment our first results brands processed time clients. a October. help CXXX broadens targeted allowing Wendy's, as is our reach over billion proposals from base platform, highly for McDonald's, technology and in delivering partnerships. which we into growth strengthens for XX the our the advertisers position Macy's, including and received

Matchpoint. to Turning

new platforms, substantial investments and showcase growing We've and Typically, hire see several represent for time and mid- including initial Matchpoint's about infrastructure more. recently We a closed X- and existing key to channel time. lead potential, deals these some pipeline our X-figure customers. Matchpoint deals now is to XX-month distributors the progress. opportunities, to lead that deals of content made continue to below strong OEMs, We've support demand on

and financial this seeing real year we April. new in the anticipate into the beginning in So year half the back impact fiscal of

AI scale engaged meet in Additionally, dispatch our of on licensing business, opportunities could to we're actively new clients significant the lead business developing means that markets. FAST We're meaningful shorter-cycle helping AVOD revenue this to and through front. conversations

Google in portions to search, We're if stream a track seeing release. opportunities tool new the leader opens our which cineSearch, and positioning content in licensing. we're successful. OEMs content volume side, for discussions already major year. We're revenue training. discovery On on with our license discussions our add with up AI-powered a promising of next developed for AI to is in content significant in several value a to AI-driven full a consumer library technology as to We're XX,XXX parties also title library multiple Cineverse with license

what's major momentum sales driving on down are we a producing stream ad the what outlined operator, in real pathway theatrical and that, can innovation doubling open tech and redefined growth and results building forward all, and Indore. Above and or developing positions building approach channels transparent success. profitability fair on to not achieve. With Q&A. SVOD, strategies any Moneybraw us quarter showing and a financial The ecosystem our look already shown groundbreaking last our technology. entertainment scaling available up deals podcasts. this our has to We're this for with possible slate, Cineverse which through powered any provide to highly for tech it sales, This quarter results cost-effective, Matchpoint and with tech-enabled studio. And a engagement, listenership supportive leverages in risk-advantaged major sustained we're this proprietary AVOD direct We also podcast content as modern growth. let's approach company by FAST a and Terrifier, IP content stands model expanding with that ahead, filmmakers our and to Looking for is ] strong revenue model licensing partnerships, for franchise-driven data-driven currently complements out on ad [ from

Benchmark from [Operator Company. Instructions] Kurnos of the Dan comes first with question line The

And plenty just by the and in Chris, your you've of obviously, -- to remarks. of I I'll this unprecedented boatload off you're others, it just saying is you plaudits sense TX. a but big love to mentioned start a I'm in prepared thing. peers your a congratulations going have I'd from movie you sure success that guys getting make from industry. been on an on from what cash

some investments going based you're going about playbook. additional you talk fund How think it can more we and you? next on position with in quarter, I silent, could to debt, think help have but kind but through company know forward? grow you're that started the how going You content does another do of the just other means about you do this how quickly into what success like what us to films for revenue stream

I Yes. of is comments. It streaming still and Dan, think the And of this And even our technology That's working that you. results across do. was show we where content saw thank business plan XX% quarter you, core last those up were for sequential you quarter, company. our base we're over the our revenues Terrifier. without Well, very nice look, what the a

business, to of terms point. on, business want I broadcast technology that our digital your streaming licensing underscore business, In just so

and the goal out-of-pocket in mousetrap ecosystem build right way new better reason we line well we over order that. astounding release XX release into why to of for this an releasing we out with advantage movie successful in stand a element because marketing that the almost was in did I to that a industry the that another leveraged Our happened, in where is so also, take the really now spend. my what we of figure consistent just we built movies every no just with and and what company works developed saying in successful Erick the blueprint incredibly It's of years a kind it's for remarks and turn kind it sort profit of last did how are is who to that

network, of now our market with to ecosystem have a goal we're actually technology, in with entire product assets this our is footprint product allow to fan-centric our all discussing. acquire during the across because our we measures use of other really always new their both then studios leverage don't and that line to ecosystem, that and own business here, ad create have what and social independent podcast leverage portfolio we they channels, to the So ourselves place our

So in door, Obviously, properties we're horror on people the now. knocking right particularly are sorting through our space.

saw horror non space 'XX ban out salt X other at some announced us controversial And Night, that ecosystem. number with Night, entries our continuing well some Santa very Silent family out using we're consider properties movie our got that of theaters. You Terrifier had came people and on that Deadly We're the and the Christmas which from is just we Claus. that we've following a and [indiscernible] classic a in we've in in to IP animation want looking our taking well-known space the horror as in space. faith But

place for saw we it to and extension an of assets It's streaming X. supports So hugely really and it's all and as is our business. just we with on not And augments, goal ongoing be the business as really a to based us company. it's technology turn an capital-intensive in a this into and going Terrifier put

content coming X to months. over or releases So more about announcements I X next the see think you're going

releases sooner of later. might some happen be And that those than rather

windowing screen have the or that decide licensing, TBD? of how through box. on you just helpful. is do but you you X that yet? That's one an to point, for are -- plan, maximize sort you last rerelease have we And a how to it. in the on thinking And Got thought have turn it hugely at Erick, putting opportunity Have about this Christmas,

are box a great upside big now versus have pay services on that a we The of getting check from because, to That's screen we question our obviously, the franchise. the balance. value streaming and would base get subscriber from recognizing

the weeks. actively our going and on few analyzing next what in we that a to decision engaged do make So hope over in to options space, we're we're

hearing what particularly movement meta the Erick, And should Perfect. now on you. that tagging how industry sales on lot a buy short more to cineSearch I watch the from think cycle that and just I a update license content about the we're comments monetization about of I for industry opportunity to that we tech. was they kind the the progress bleeding. kind long-term nice appreciate there. your given thought realized around direct of and given wanted need ads, quickly quickly finally has in to that you to of just stem ask streaming interesting

taking So Avon off again. Faster

to Just in business that curious kind order develop to see line. of need you what there

Sure, sure.

all the of your second tackle on question piece. first cycle I'll So the part short

marketplace, these the kind there's you if -- of all basically has the at FAST TV been on universe. of out platforms, manufacturer, of VIZIOs so and which single OEM So every look Samsungs, of the trends biggest is one the

of are FAST-only FAST them channels, offering. subscriptions. without Most expanding programming Everybody of have complement to ad-supported a a really on-demand offerings FAST programming, All to on-demand of out them mix much needs have platforms. really as and to their the rounded launched add-on

all are pretty volumes them components. of all in demand is for market So significant these of that's What a adding the caused ad-supported large content. of

lot if a long library. players controlling for distribute up our for content, we're a job scaling addition very rapidly is in and very large places and their own these the can make has X or normally real ingest Matchpoint efforts Today, guys up of most delivering the like we and rapidly us actually or expensive But So Berlin one, of room, it, number modules advantage to in of help companies expensive very, cost content you rapidly help companies do very of AVOD money to us a time. trying services, using content actually help at quickly, will, into the take industry, dispatch of Matchpoint, rapidly Clearly, and can we are we and so to ecosystem, is take scale all to do that you're expanding better the owning with outsourced a we cycle platforms either can that airlift to a this that one a that. have in very ourselves. in of opportunity

are various voracious to $X well that same next platform can't a conversations billion demand, reports years that very real. the also to is up the rapid been look that, have challenges intense. business Beyond a period billion few on is a and problem. out it. AI of is depending bigger These incredibly platforms is the existing partners. But to you like do Matchpoint, And that certain, even engaged $X this system that you scalable to at in in variety that that very doing with be And data, really of said a and There's can you licensing. want have training unless how tackle ecosystem two, ideal it really more the over technical help time. anywhere it content platform demand that scale for want from today there content one those a an works streaming We're thing with

away, for to So the not we the really short-term Both going have opportunities cash both it. that that's midterm on opportunity. these are technology high but help these are now, the the is very to market of demand in of and right actually

about phones, thing television manufacturer into at talk really for to piece. mobile then out every you as that at much in to the OEM point is, space, to And cineSearch, AI major incorporate So content needs biggest think features systems discovery. the look TV we like I their if that's

develop internationally. sold that there than may number opportunity the the you television just large own U.S. this alone, very build we the a or solution half of more represents larger some in with XX in internal of given no year think But players like every the that and have market to And something platforms. every million plus there's when U.S. their out TV double sold

big the pretty us about to think fulfilling experience customer market I need tools. a for is So big AI-driven thing think

as solution this turnkey a for different can have has So manufacturer manufacturer, is, They imagine, every demands. different partnerships you what isn't every now players. working on different we're with

So with it's these partners. less of thing a bespoke a white and label approach more turnkey of

And in on actively that so front. variety engaging a conversations of we're

hope year I more to think we have evolves. that on that next really as

next The with Alliance the is Brian Global from question line Kinstlinger of Partners.

the in add box me success Let on congrats office. my your

on of leveraging I future how to evaluating coming what platform? and in numerous best the suspect to response success determine will playbook what titles independent success to movies the chance your you of under about up ecosystem go your you is Following the

a of comment your for and couple things. Brian, Thanks,

our and what Disgusting new process with best anyways horror work what we we assets exhaustive that knows works a that in first foremost, doesn't of ton But a can what have Terrifier. that's evaluate we screen space, in to very with box property. and we leverage place that system. in use movies and and Bloody would we to for an leverage place distributing in horror continue any history think with properties of Obviously, executive look that We have really team and our greenlighting we would

give specifically will a the a And that is Night, properties horror Night the going that that's Deadly launching the is And us friends important go thing to properties about Friday is to so we can question that leg the piece is see concept tell online kind of up threshold we I actually a going like is in the movie first fan he that have -- all it. can asked be Terrifier What follow base space, any same it see to did, or like has other playbook, a theater fan it sort that my known still question it, we're that's think concept Silent IP fan one for that that here idea any she threshold mind, buzz looking can at to or about so to in first the he it. in content. And a of of their is on to an go base see. rush usually out to that make a that

Barney looking of up now where said, strength, [ and kind evergreen think channels but built think with really in content. track we and the Garfield faith-oriented verticals very Cross, family of Bob as We've not we pure which and we've that family on had Agresboro, So children's well Marty business that very again, as I and more family down, ] all even children other are friendly is content. and a just with ] we're we're animation, friendly anime have IP our [ sit Ross in we which and to to to from record in releasing

any again, going the we're us believe properties capability at have property for have base expertise assets, opposed to be back waiting we see and we will which forward step extremely we leg financial terms good out-of-pocket piece that be we movie that all-in in put on and a to #X the with and know in and that properties to theater looking and to a to million. our going of a board, And fan the we $XXX,XXX just we're the in give I to we And less movie spending. clearly, going go And again, marketing that release commitment open it a of proved up we well. home. know here out in cautious a concept we could financial So as standpoint to there's think than $X -- investment of content model call and the as cash that's from to see it

it. we content so absolutely by So We you announcements we we've We months. great and movies, our what feel next can I in to seen to feel think, X some more the astounded People good submissions about about X the positioning. are about feel the response great that did. far, expect about really industry

Night, your like it title will you Silent are wide release? a title, ecosystem if theatrical by Deadly determine And for you title, or release? or be realizing titles limited Night or Great. how a then given will any can that you other Is

until use call. you're the see go. make do We're intending release production movie, to actually to that model going but or you're movie, buying it's finished in a tough whether wide to you this wide movies, How it's to

a in with Fortunately, based knew we on we We a it knew winner reaction and the had as reaction. the had. Terrifier Once critical also the saw Austin debuted fantastic said, August. I we movie. what fan X, complete We test in

absolutely to wide no weeks the exhibitors X when of theater that was. getting with of upside movie. quickly figured going the there's in It selling was So movie. there matter release much just And question started how the out their out of a about realize advance they

audience smart so informed don't that level but interest even hopefully, built-in that take So we a whether to excitement theaters we whether of limited that or about really going a have sort we of properties a how release. excitement, that can we're at you pick wide on decision fraction many and have that go and make

price to bit us share model? on kind how annual model? maybe SaaS an if On could device a revenue the it's Great. licensing understand you it could help a about monetized if Is model. it cineSearch, going Is per TV? that's little you this be to of recurring revenue Is Just model?

want you that? Tony, or Erick take to

Yes.

these a to high I going be mentioned bespoke to these are very of at really think deals. due and of size than SaaS a the obviously, and I pure model as are scale level, earlier, these more types just

variable platform I some think in similar but ways this. opportunities right? that -- do anticipate being also API-driven see are of and But combination other other fee do there plus So similar models, I would costs of to the deal sort would license you

that things other the advertising-based For could models example, that and modify approach partner. depending on

discussed grew with RFPs advertisers, revenue are grow wondering the to much non-entertainment podcasting you I'm with you I'm Great. with question last of various just couple from yields XX% sequentially. the that than next is viewership, wondering see My coming stronger over to expect I'm will rates. about fill you're how that faster do revenue wondering even you thinking the in where stronger viewership quarters?

Yes, yes.

-- our a I lineup of our we you're first -- to was in when chicken just with the and So scenario products. audience of was goal product, first think a goal build egg great to new build building

really monetization. we so on focusing first before And did that

a to have gap, head space that lot So of you revenue. monetization to grow where natural a leads

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scale So model a a not big it's you system. just unless sustainable have

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Huidor. I'll ahead, Huidor the let Tony call. on Tony Go Tony.

I'll take question. that

and it on deal So the and they then licensor underlying we our goes And ]and the deliver mastering prep. that source. sort and that Foligan never deliver on, sits a a [ different it Matchpoint, We And is the with from and can X,XXX of file they deliver premise of QC Matchpoint. the ways. then inside quality to highest then do Matchpoint to Matchpoint need take point

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further remaining. There questions are no

remarks. So for I'll team closing pass the conference back over to the management

Yes, this is Chris.

have much. forward Terrifier the questions, all you then the with have. if Christmas Thank Milstead joining our for next reissue feel hope thanks all you all quarterly the go you questions on And Jovy X, out you of to reach additional you again I speaking any So today. and any look we free might to to additional see please to you very call. us

for today's participation. concludes conference That your call. you Thank

disconnect You lines. your may now